BOI experiences surge in agri funding approvals

Makati Metropolis, Philippines — The Board of Investments (BOI) reported a surge in agricultural investments after the Fiscal Incentives Evaluation Board (FIRB) raised the funding threshold to P15 billion from solely P1 billion.

Fiscal Incentives Evaluation Board (FIRB) decision No. 003-24, issued on Feb 2, 2024, empowers the BOI and different funding promotion companies (IPA) to approve tasks with an funding capital of as much as P15 billion for registration and incentives.

Beforehand, IPAs may approve incentives just for tasks with as much as P1 billion in funding capital. Incentives for tasks exceeding P1 billion in capital have been dealt with by the FIRB, consistent with the provisions of the Company Restoration and Tax Incentives for Enterprises (CREATE) Act.

The FIRB decision is consistent with President Ferdinand R. Marcos Jr.’s directive to ease doing enterprise within the nation, in accordance with a BOI assertion.

The BOI stated that from Feb 2 to June 11 it had already accepted six tasks with funding capital of between P1 billion and P15 billion. These tasks signify a complete funding of P13.38 billion, with the agriculture sector main at P6.05 billion, adopted by the transportation and storage trade at P3.95 billion.

Know-how improve, meals safety

“Latest approvals with investments starting from P1 billion to P15 billion spotlight the advantages of elevated funding thresholds for the agriculture sector. These tasks, upon completion, will drive the adoption of latest applied sciences and strengthen meals safety. That is essential to satisfy the rising meals demand, and maintain resilient agricultural methods regardless of local weather change and different challenges,” stated Commerce and Trade Secretary and BOI Chairman Fred Pascual within the assertion.

READ: Restricted non-public investments in agri result in low farm productiveness — knowledgeable

Investments in agriculture embody the registration of a brand new producer of dressed complete, additional processed, or cut-up chickens; a dairy farm and milk-processing facility, and a chilly storage facility venture.

Whereas IPAs now deal with functions as much as P15 billion, tasks exceeding this quantity stay below FIRB’s jurisdiction.

READ: Gov’t targets P1.3-trillion funding to spice up rice output

Beforehand submitted tax incentive functions from IPAs for tasks with funding capital as much as P15 billion shall be returned to the respective IPAs for processing and approval.

Granting IPAs larger authority to approve incentives, the FIRB decision will enhance their position in managing the nation’s incentive regime. This ensures compliance amongst registered enterprise enterprises (RBEs) whatever the quantity of funding capital.RB approval.